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A federal appeals court will hear arguments in Lilly's 340B contract pharmacy lawsuit on Oct. 31.

Federal Appeals Court Will Hear Arguments in Lilly’s 340B Contract Pharmacy Suit on Oct. 31

A federal appeals court in Chicago will hear oral arguments in drug manufacturer Eli Lilly’s 340B contract pharmacy lawsuit against the federal government on Oct. 31, the court announced on Tuesday.

The half-hour session will take place one week after a federal appeals court in Washington, D.C., hears arguments in Novartis and United Therapeutics’ consolidated lawsuits bringing similar claims against the U.S. Health and Human Services Department (HHS) and Health Resources and Services Administration (HRSA).

A third federal circuit court in Philadelphia has not yet scheduled arguments in three more 340B contract pharmacy lawsuits filed by Novo Nordisk, Sanofi, and AstraZeneca.

In all six cases, the drug makers are challenging the legality of HRSA’s May 2021 determinations that the companies’ restrictions on 340B pricing to covered entities that dispense drugs through contract pharmacy arrangements resulted in overcharges that violate federal law and must stop. In September 2021, HRSA referred all six manufacturers to the HHS Inspector General for possible imposition of civil monetary penalties.

Federal district courts issued divided rulings on HRSA’s actions against the companies.

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